B&G Foods to acquire ACH Food Companies for $365m

US-based frozen food producer B&G Foods has agreed to acquire American seasonings supplier ACH Food Companies for a cash amount of $365m.

The agreement will be subject to a post-closing inventory adjustment.

B&G Foods president and chief executive officer Robert Cantwell said: “This acquisition will significantly broaden our position in the large and growing spices and seasonings category, which we believe is very relevant to today’s consumer, who is looking for healthier options, simple ingredients and enhanced flavour.

“Consistent with our acquisition strategy, we expect the acquisition to be immediately accretive to our earnings per share and free cashflow.”

ACH owns a wide range of spices and seasonings brands, including Spice Islands, Tone’s and Durkee. It is also the owner of Weber sauces and seasonings, which will be sold under licence.

As part of the acquisition, B&G Foods will also be acquiring ACH’s manufacturing facility in Ankeny, Iowa, US.

The US-based frozen food producer anticipates that the acquisition will be closed by the fourth quarter of this year, subject to customary closing conditions, including the receipt of regulatory approvals.

B&G Foods plans to finance the acquisition with cash on hand that includes the net proceeds of its August 2016 public offering of common stock, as well as other revolving loans under its existing credit facility.